RAMASUBRAMANIYAN Vs. DEPUTY REGISTRAR OF

JUDGEMENT

(1.) THE three petitioners are emproyee's of the Registration Department. THEy were proceeded by the respondent under Section 87 of the Tamil Nadu Co-operative Societies Act, 1983 seeking for a show cause as to why a sum of Rs. 5,63,479/- together with interest at the rate of 18% should not be recovered from them. THE charges against the three petitioners were that they are employees of the Registration department and they have not properly maintained the Encumbrance Certificate and they have also issued Clearance Certificate by hiding the prior sale of the property prior to the sale deed dated 14.9.1998. THE Encumbrance Certificate issued by the Office of Sub-registrar, Paramakudi, dated 23.3.2007 does not mention the sale effected on 14.9.1998 and thereby, the bank has incurred loss.

(2.) THIS is a strange proceedings initiated by the Deputy Registrar against whom he cannot bring any charge of this nature. In case of a sticky advance, if encumbrance certificate issued by the Registrar's Office was relied upon by the persons, who secured the loan and ultimately it was found that the properties were not in existence, then the Registrar will have to proceed against those who had borrowed the loan either in their corporate capacity or in their individual capacity. On the basis of the Encumbrance Certificate issued by the Registration Department, he cannot have any jurisdiction under Section 87 of the Tamil Nadu Co-operative Societies Act, 1983 to proceed against the employees of that department. It is not for that purpose Section 87 is intended for.

(3.) HOWEVER, a copy of this order shall be marked to the Sub-registrar, Parmakudi and to the Inspector of General for Registration for making appropriate action against the persons who committed irregularities as disclosed in this writ petition.